IRDA and its Licensing Functions MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on IRDA and its Licensing Functions, a fundamental topic in the field of IC 14 Regulations of Insurance Business. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our IRDA and its Licensing Functions MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of IRDA and its Licensing Functions mcq questions that explore various aspects of IRDA and its Licensing Functions problems. Each MCQ is crafted to challenge your understanding of IRDA and its Licensing Functions principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 14 Regulations of Insurance Business tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our IRDA and its Licensing Functions MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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IRDA and its Licensing Functions MCQs | Page 10 of 20

Discover more Topics under IC 14 Regulations of Insurance Business

Q91.
What measure is allowed for promoters holding more than twenty-six percent of the paid-up capital in an Indian insurance company?

a.

Immediate divestment

b.

Divestment within 5 years

c.

Divestment within 10 years

d.

No divestment required

Discuss
Answer: (c).Divestment within 10 years Explanation:Promoters holding more than twenty-six percent of the paid-up capital are permitted to divest in a phased manner over a period of ten years from the date of commencement of business.
Q92.
In case the requisition for registration is rejected, when can the applicant approach the IRDA for re-consideration?

a.

Within 15 days

b.

Within 30 days

c.

Within 45 days

d.

Within 60 days

Discuss
Answer: (b).Within 30 days Explanation:If the requisition for registration is rejected, the applicant may apply to the IRDA within thirty days of such rejection for re-consideration of its decision.
Q93.
What is the timeframe within which an applicant, whose requisition for registration has been accepted, may make an application for the grant of a certificate of registration?

a.

Within 15 days

b.

Within 30 days

c.

Within 45 days

d.

Within 60 days

Discuss
Answer: (b).Within 30 days Explanation:An applicant, whose requisition for registration has been accepted, may make an application for the grant of a certificate of registration within thirty days.
Q94.
If the Authority finds that the assured rates, advantages, terms, and conditions in connection with life insurance business are not workable or sound, what action may it take?

a.

Reject the application

b.

Direct the insurer to make modifications

c.

Suspend the application

d.

Approve the application without modifications

Discuss
Answer: (b).Direct the insurer to make modifications Explanation:If the Authority finds that the assured rates, advantages, terms, and conditions in connection with life insurance business are not workable or sound, it may require the insurer to make modifications.
Q95.
What factor does the IRDA give preference to in the grant of a certificate of registration?

a.

Capital structure

b.

Record of performance of promoters

c.

Planned infrastructure of the company

d.

Business providing health covers

Discuss
Answer: (d).Business providing health covers Explanation:The IRDA gives preference in the grant of a certificate of registration to applicants proposing to carry on the business of providing health covers to individuals or groups.
Q96.
Within what timeframe may an applicant appeal to the Central Government for reconsideration if the IRDA rejects the application for registration?

a.

15 days

b.

30 days

c.

45 days

d.

60 days

Discuss
Answer: (b).30 days Explanation:If the IRDA rejects the application for registration, the applicant may appeal to the Central Government for reconsideration within thirty days.
Q97.
By what date should an insurer renew their registration each year?

a.

31st March

b.

30th September

c.

31st December

d.

30th June

Discuss
Answer: (c).31st December Explanation:An insurer who has been granted a certificate of registration should renew the registration before the 31st day of December each year.
Q98.
What is the basis for calculating the renewal fee for an insurer's registration?

a.

Fixed amount irrespective of premium income

b.

One-tenth of one percent of total gross premium

c.

One-fourth of one percent of total gross premium written direct in India

d.

One-fifth of one percent of total gross premium written direct in India

Discuss
Answer: (d).One-fifth of one percent of total gross premium written direct in India Explanation:The renewal fee for an insurer's registration is the higher of fifty thousand rupees for each class of insurance business or one-fifth of one percent of total gross premium written direct in India during the financial year preceding the year in which the application for renewal is required.
Q99.
In the case of an insurer solely engaged in re-insurance business, what is considered for calculating the renewal fee?

a.

Total gross premium written direct in India

b.

Total premium in respect of facultative re-insurance accepted in India

c.

Total gross premium written globally

d.

Total premium written for linked insurance products

Discuss
Answer: (b).Total premium in respect of facultative re-insurance accepted in India Explanation:In the case of an insurer solely engaged in re-insurance business, the renewal fee is calculated based on the total premium in respect of facultative re-insurance accepted by the insurer in India.
Q100.
Under what circumstances may the registration of an Indian insurance company or insurer be suspended?

a.

Successful completion of an inquiry by the IRDA

b.

Conducting business in a manner prejudicial to the interests of policyholders

c.

Co-operating fully in any inquiry conducted by the IRDA

d.

Submission of periodic returns as required under the Insurance Act

Discuss
Answer: (b).Conducting business in a manner prejudicial to the interests of policyholders Explanation:The registration of an Indian insurance company or insurer may be suspended if it conducts its business in a manner prejudicial to the interests of policyholders.
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